Top Five Questions relating to Chelsea leasehold conveyancing
Having checked my lease I have discovered that there are only 62 years remaining on my flat in Chelsea. I need to get lease extension but my landlord is absent. What options are available to me?
If you qualify, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for for permission to dispense with the service of the initial notice. This will enable the lease to be granted an extra 90 years by the magistrate. However, you will be required to prove that you or your lawyers have made all reasonable attempts to track down the landlord. On the whole a specialist would be useful to try and locate and to produce a report to be accepted by the court as proof that the landlord is indeed missing. It is wise to seek advice from a conveyancer both on proving the landlord’s disappearance and the application to the County Court covering Chelsea.
Back In 2003, I bought a leasehold house in Chelsea. Conveyancing and Aldermore mortgage went though with no issue. I have received a letter from someone claiming to own the reversionary interest in the property. It included a ground rent demand for rent dating back to 1994. The conveyancing solicitor in Chelsea who acted for me is not around.Any advice?
First contact the Land Registry to be sure that this person is in fact the registered owner of the freehold reversion. You do not need to incur the fees of a Chelsea conveyancing firm to do this as you can do this on the Land Registry website for less than a fiver. Rest assured that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 no more than 6 years of rent can be collected.
Last month I purchased a leasehold flat in Chelsea. Am I liable to pay service charges for periods before my ownership?
Where the service charge has already been demanded from the previous lessee and they have not paid you would not usually be personally liable for the arrears. However, your landlord may still be able to take action to forfeit the lease. A critical element of leasehold conveyancing for your conveyancer to be sure to have an up to date clear service charge receipt before completion of your purchase. If you have a mortgage this is likely to be a requirement of your lender.
If you purchase part way through an accounting year you may be liable for charges not yet demanded even if they relate to a period prior to your purchase. In such circumstances your conveyancer would normally arrange for the seller to set aside some money to cover their part of the period (usually called a service charge retention).
What are your top tips when it comes to choosing a Chelsea conveyancing practice to carry out our lease extension conveyancing?
If you are instructing a property lawyer for lease extension works (regardless if they are a Chelsea conveyancing practice) it is essential that he or she should be familiar with the legislation and specialises in this area of work. We recommend that you talk with two or three firms including non Chelsea conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be helpful:
- How familiar is the practice with lease extension legislation?
- How many lease extensions has the firm conducted in Chelsea in the last 12 months?
Do you have any advice for leasehold conveyancing in Chelsea from the point of view of expediting the sale process?
- Much of the delay in leasehold conveyancing in Chelsea can be reduced if you appoint lawyers as soon as you market your property and ask them to put together the leasehold information which will be required by the buyers conveyancers.
- Many freeholders or managing agents in Chelsea charge for supplying management packs for a leasehold homes. You or your lawyers should find out the fee that they propose to charge. The management information can be applied for as soon as you have a buyer, thus accelerating the process. The typical amount of time it takes to receive management information is three weeks. It is the most frequent cause of delay in leasehold conveyancing in Chelsea.
- If there is a history of conflict with your landlord or managing agents it is essential that these are settled prior to the flat being marketed. The buyers and their solicitors will be warry about purchasing a property where there is an ongoing dispute. You may have to bite the bullet and pay any arrears of service charge or settle the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled prior to the contract papers being issued to the buyers’ solicitors. You will still have to reveal details of the dispute to the buyers, but it is better to reveal the dispute as historic rather than unsettled.
- If you have the benefit of shareholding in the freehold, you should make sure that you have the original share document. Arranging a duplicate share certificate can be a lengthy process and frustrates many a Chelsea conveyancing deal. If a reissued share certificate is needed, you should approach the company officers or managing agents (where applicable) for this as soon as possible.
- You may think that you are aware of the number of years remaining on your lease but it would be wise to double-check via your lawyers. A buyer’s conveyancer will not be happy to advise their client to proceed with the purchase of a leasehold property the remaining number of years is below 80 years. In the circumstances it is essential at an early stage that you consider whether the lease for your property needs extending. If it does, contact your solicitors before you put your home on the market for sale.
Having spent months of negotiations we are unable to agree with our landlord on how much the lease extension should cost for our flat in Chelsea. Can we issue an application to the Residential Property Tribunal Service?
You certainly can. We are happy to put you in touch with a Chelsea conveyancing firm who can help.
An example of a Lease Extension case for a Chelsea property is 150A Albert Palace Mansions Lurline Gardens in July 2013. The Tribunal determined that the premium payable for the new lease of the subject property was £42,069 This case was in relation to 1 flat. The unexpired lease term was 57.06 years.
Leasehold Conveyancing in Chelsea - Sample of Questions you should consider before Purchasing
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Its a good idea to find out as much as you can about the managing agents as they can either make your life much simpler or uncomfortable. Being a leasehold owner you are often at the mercy of the managing agents from a financial perspective and when it comes to day to day issues such as the upkeep of the common parts. Enquire of other people whether they are happy with them. Finally, be sure you discover the dates that the service fees are due to the managing agents and specifically what it includes.
How long is the Lease?
Are there any major works in the near future that will likely increase the service charges?